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The Nigerian government’s efforts to diversify the economy have received a major boost from the digital economy, especially in the ICT sector. President Muhammadu Buhari recently praised the government for raising $547 million from the sale of the 3.5 GHz spectrum to MTN Nigeria and Mafab Communications, marking a significant step in the country’s move towards 5G network deployment.
In his speech at the opening of the National Shared Services Centre (NSSC) in Abuja, President Buhari highlighted how the digital economy is creating jobs and driving economic growth. The NSSC, managed by Galaxy Backbone Limited, will provide important services like cybersecurity, network support, and call center operations, helping government agencies connect with citizens.
The ICT sector has made a significant impact on Nigeria’s economy, contributing 18.44% to the country’s GDP in the second quarter of 2022, much higher than the oil sector’s 6.33% contribution. Since 2019, Nigeria has expanded its broadband infrastructure, increasing 4G base stations from 13,823 to 36,751, and boosting 4G coverage to over 77% of the country. The launch of 5G will continue this growth.
In addition to the spectrum sale, the government’s push for better data privacy, digital identity, and the expansion of digital services has received worldwide recognition. Nigeria’s digital identity enrollment has surged from 39 million people in 2020 to nearly 92 million today.
The Minister of Communications and Digital Economy, Prof. Isah Ibrahim Pantami, praised the administration’s progress in developing ICT infrastructure, including expanding fiber optic cables from 15,000km in 2015 to over 60,000km today. Galaxy Backbone’s role in connecting more than 400 government agencies to the NSSC is also helping ensure that digital services reach all parts of the country.
With the rise of technologies like AI, cloud computing, and the Internet of Things, Nigeria is positioning itself to succeed in the global digital economy. The opening of the NSSC is another important step in this direction.
